Belfry Company makes special equipment used in cell towers. Each unit sells for

$ 410$410.

Belfry produces and sells

12 comma 60012,600

units per year. They have provided the following income statement data:

Traditional Format			Contribution Margin Format
Sales revenue	$5 comma 166 comma 0005,166,000		Sales revenue	$5 comma 166 comma 0005,166,000
Cost of goods sold	2 comma 700 comma 0002,700,000		Variable costs:
Gross profit	2 comma 466 comma 0002,466,000		Manufacturing	800 comma 000800,000
Selling & admin. expenses	625 comma 000625,000		Selling & admin.	400 comma 000400,000
			Contribution margin	3 comma 966 comma 0003,966,000
			Fixed costs:
			Manufacturing	1 comma 900 comma 0001,900,000
			Selling & admin.	225 comma 000225,000
Operating income	$1 comma 841 comma 0001,841,000		Operating income	$1 comma 841 comma 0001,841,000

A foreign company has offered to buy

7575

units for a reduced sales price of

$ 300$300

per unit. The marketing manager says the sale will not affect the company's regular sales. The sales manager says that this sale will require variable selling and administrative costs. The production manager reports that it would require an additional

$ 30 comma 000$30,000

of fixed manufacturing costs to accommodate the specifications of the buyer. If Belfry accepts the deal, how will this impact operating income? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

A.Operating income will increase by

$ 22 comma 500$22,500.

B.Operating income will decrease by

$ 15 comma 357$15,357.

C.Operating income will decrease by

$ 14 comma 643$14,643.

D.Operating income will increase by

$ 14 comma 643$14,643.